Crypto Interest Grows on Legislation Advance

Bitcoin stalls as crypto legislation faces uncertainty in Congress, with analysts noting that other crypto assets have room to catch up amid growing interest in stablecoins.

Bitcoin Keeps Setting Records

The price of Bitcoin fluctuated at the start of the week, initially reaching a new record high before pulling back. The initial push to get US President Donald Trump's stumbled. Eventually, after a marathon session in the lower House, a procedural vote allowed the process to move forward, but it could face challenges in the final vote. The legislative progress has left Bitcoin trading below its record highs, moving largely sideways as markets await developments.

Once the legislative issue is clarified, . The fundamentals that pushed it to the Monday high appear to be intact: Treasury companies remain bullish and are buying, while ETFs have shown strong inflows. Strategy (formerly MicroStrategy) also announced it acquired $472.5 million in BTC last week. And more than $1 billion in inflows to spot Bitcoin ETFs were recorded on Thursday and Friday alone. E, with record-low OTC supply.

Other Digital Assets Show Promise

The prospect of passing the so-called GENIUS Act, which would provide a , has left analysts discussing a "mania" for the assets. For example, stablecoin user Circle Internet Financial has seen its shares surge by over 675% since its debut on the stock market at the start of June. Its success has sparked interest from other investors looking to enter the stablecoin market, which could further fuel the growth of crypto assets.

Ethereum and other digital assets have lagged behind Bitcoin over the past few years, leading to speculation that broader catch up with the premier cryptocurrency. Bitcoin has outpaced stock markets, which have suffered somewhat due to the typical summer illiquidity. The prospect of cheaper borrowing if the Fed lowers rates later this year could also support crypto assets. On the other hand, cryptocurrencies are also sensitive to macroeconomic changes, and a slowdown in the economy could affect investor enthusiasm.

Bitcoin Holding Pattern Nears Breakout

Following a strong surge at the start of July, Bitcoin appears to be forming a bullish pennant. Price action is squeezed between the 'autotrends' and the RSI, which is just below 50, suggesting there is plenty of technical headroom. A move upwards would encounter resistance at the latest swing high at the round $120K level, with a break exposing the all-time high of $122750 as the next level of resistance. A break in the other direction could find support at the bottom of the tightening Bollinger Bands at $116900, followed by the next resistance at the week's low of $111630.

Source: SpreadEx | Bitcoin